Grant Hylton Started a Consulting Business,Grant Consulting,on January 1,2016,and the Business

question 100

Essay

Grant Hylton started a consulting business,Grant Consulting,on January 1,2016,and the business engaged in the following transactions during the year:
1.Issued $40,000 of common stock for cash
2.Provided services on account,$46,500
3.Incurred $37,500 of operating expense,but only paid $32,000 of this amount
4.Collected $39,000 of the revenue that was previously recorded on account
5.Paid a cash dividend of $4,000 to the stockholders
Required:
a)Show the effects of the above transactions on the accounting equation.Precede the amount with a minus sign if the transaction reduces that section of the equation.Enter 0 for items not affected.

b)Prepare an income statement and statement of cash flows for 2016.Precede a cash outflow amount with a minus sign.

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Definitions:

Mandible

The lower jawbone, which is the largest and strongest bone of the face, involved in chewing movements.

Temporal

Related to the temples of the head or to time.

Maxilla

is a pair of bones forming the upper jaw and part of the orbits of the eyes, holding the upper teeth.

Styloid Process

A slender pointed piece of bone just below the ear, serving as an anchor point for muscles associated with the tongue and larynx.